FIA Releases Letter to U.S. Treasury on Clean Energy Tax Credits Inclusion of Fusion
On August 1st, the Fusion Industry Association (FIA) submitted a letter commenting on the Internal Revenue Service’s (IRS) forthcoming guidance on Certain Energy Generation Incentives (Notice 2022-49) as enacted in the Inflation Reduction Act of 2022. This letter represents the consensus view of the FIA that the inclusion of fusion in the § 45Y and § 48E credits would provide critical incentives and certainty as fusion moves to commercialization.
Fusion energy is a clean energy source and so the FIA appreciates the inclusion of fusion energy as categorically qualifying as a zero greenhouse gas emissions technology for the purposes of these credits. Knowing that fusion power will be eligible for the clean production and investment tax credits provides certainty to the industry and unlocks new or additional investment.
Further, while the FIA is supportive of the rule and its inclusion of fusion, we would encourage the Department to change its terminology for fusion power. Instead of “nuclear fusion facilities”, we recommend the use of “fusion energy facilities” or “fusion machines” which Congress recently defined in the ADVANCE Act, signed into law on July 9.
The FIA strongly supports the desire of Congress and the Administration for a technology-neutral approach towards clean energy and energy security policy. Recent progress by FIA member companies, built on decades of research and knowledge gained about fusion energy, now provides a realistic chance of deploying this zero-emission, clean energy power source in the next decade. As such, it’s vital that the Administration maintain tax credit equity for fusion energy, compared to other clean energy technologies, that will directly incentivize private sector investment into clean, safe, sustainable fusion energy. We stand ready to work together and answer any questions the IRS or Treasury might have in implementing these provisions, as it pertains to fusion energy.
You can read the full FIA letter response below.
August 1st, 2024
